U.S. bond yields have jumped to their highest levels in decades, with the 10-year Treasury yield reaching 5.22% on Thursday, its highest since July 2007, while the 30-year Treasury hit 5.50%, a 22-year high. Piper Sandler identifies higher rates as the biggest risk to equity markets in 2026 and 2027, particularly for companies in the S&P 1500 with debt loads above $5 billion where more than 50% of the debt is coming due over the next five years. Potentially vulnerable companies include Live Nation Entertainment, Ford Motor and Keurig Dr. Pepper. The analyst notes that strong earnings growth, supported by AI-related investment, provides an important offset, but that less receptive credit markets remain a significant risk.
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